Many home buyers mistakenly treat shopping for a new construction home like shopping for a new car. You follow the signs posted around town or visit the builder’s website to see what they have on the lot, and then head over to see the product in person. Taking a tour of the model home is similar to test driving a car, and if you like the ride, you start talking numbers. And, like with a new car, you can place a more expensive custom order with a long wait, or you can opt for the convenience of what’s currently available. Like buying a new car, when it comes time to talk finances, you’re often at a disadvantage in the negotiation because you don’t know what the last dozen buyers under contract have paid. Homebuilding is even less transparent than car production about the builder’s costs or profits.
So how do buyers get the best deal on a new construction home and enter the process armed with information? Like 87% of home buyers did in 2022. They used an Agent! According to the National Association of REALTORS® 2022 Profile of Home Buyers and Sellers, homebuyers overwhelmingly choose to work with a agent. Why would a home buyer abandon that resource just because they’re buying from a builder instead of a private seller?
Usually, it’s ignorance of the home builder’s policies, or it’s a lack of planning. They just wander in and get swept up in the moment.
Many people assume they can’t bring their own agent to a builder's showroom, but we work with builders all the time. Builder representatives know we are the direct link to great buyers, and they are happy to compensate us for bringing a buyer. Often, the catch is that the buyer has to bring their agent on the first visit, so be sure to communicate with your agent while you’re out looking! Otherwise, there can be conflict over who is really responsible for attracting the buyer.
Three Things Your agent Can Do, But a Builder’s Representative Can’t
Represent Your Interests
A builder’s representative is exactly that. They are employed by the builder to sell the builder’s homes. They’re often not even licensed agents. If they are, they owe you, the public, honesty and fairness, but they have a fiduciary responsibility only to the builder. An agent working on your side knows the contract, can help point out opportunities, and can help hold the builder accountable.
Show You More Homes
A builder’s representative is knowledgeable about one product, the one they’re trying to sell. If you want to look at resale homes or new homes by other builders, only your agent can help with that.
Negotiate With Knowledge
A builder’s representative works in one development full-time. They are not out shopping with their own buyer clients, taking the pulse of the resale market and other builders’ communities regularly. Your agent is more likely to know when there is an opening to negotiate, whether that be on price, terms, or additional inclusions. Does that mean you’ll get a deal? Maybe not, depending on the market’s pace, but if there’s a deal to be had, your agent is likely to know.
If you’re considering buying a new construction home, DO work with an agent throughout the journey. There’s no cost to you, and you deserve someone representing your interests throughout the deal.
